Presentation by Grand Chief Angie Wahienhawi Barnes

 Mohawk Council of Akwesasne

 On the Economic Aspect of the Great Lakes St. Lawrence Seaway Study

 October 28^th 2004

Public Meeting on the Great Lakes St. Lawrence Seaway Study

 Held in Akwesasne, hosted by the

 Mohawk Nation Council of Chiefs

Mohawk Council of Akwesasne

St. Regis Mohawk Tribe

The Position of the Mohawks of Akwesasne

Presented by: 

Grand Chief Angie Wahienhawi Barnes

Mohawk Council of Akwesasne

Sekon/Greetings to our honoured guests, to our friends and neighbors, to the representatives of the Great Lakes St. Lawrence Seaway Study, the St. Lawrence Seaway Development Corporation, the St. Lawrence Seaway Management Corporation, and to the Akwesasronen (People of Akwesasne) who are here today.

My name is Angie Wahienhawi Barnes, and as Grand Chief of the Mohawk Council of Akwesasne, I will be giving a presentation on the economic aspect of the Great Lakes St. Lawrence Seaway Study, as a supplement and support to the presentations given by Dave Arquette of the Mohawk Nation Council of Chiefs, Tony David of the St. Regis Mohawk Tribe Environment Division, and Chief James Ransom of the Saint Regis Mohawk Tribe. I would ask that my presentation both oral and written be made part of the official record of today’s proceedings.

While the context of this public meeting is for the consideration of comments of public and private sector stakeholders about the study as it endeavours to study environmental, economic and engineering aspects of the existing Seaway, it must be understood that this is not a consultation meeting and the Mohawks of Akwesasne are not merely an interest group or stakeholder.

Akwesasronen are members of the Mohawk Nation. Akwesasronen are one People, despite the contemporary borders that have been imposed upon our ancient Mohawk Community. Our people have been here since time immemorial, and have aboriginal rights to the numerous resources that the entire Mohawk Territory provides. Our ancestors and predecessors took care of the territory for us, and in turn, we have a responsibility to do the same, for the future generations of our people.

Akwesasne has a distinct economic base in its traditional territory that is closely connected to the St. Lawrence River. This is a mixed economy with traditional and non-traditional aspects. With recognition and support, the sustainability of Akwesasne’s economy would improve. By ignoring the impacts of the Seaway and other development projects, the Akwesasne economy and the people of Akwesasne are impoverished.

A fundamental economic dynamic of the Seaway is the subsidization of Seaway operations by local economies. On the one hand, shipping and cargo interests have the Seaway infrastructure placed at their disposal for modest transit fees and draw vast profits from the system. On the other hand, environmental damages and a loss of economic opportunities burden local communities like Akwesasne.

The initial costs of the construction of the Seaway to the community of Akwesasne were significant. The Government of Canada purported to expropriate a number of islands that form part of the land base of the Akwesasne economy and removed them from the shipping channel that was being dredged. Further purported expropriations took lands on Cornwall Island for the purpose of constructing the International Bridge. The value of these lands to shipping and cargo interests were incalculably more than what was offered to Akwesasne in the 1950’s.

The Supreme Court of Canada teaches us that aboriginal title has a unique value.  In the Delgamuukw case, they write:

The relationship between an aboriginal community and the lands over which it has aboriginal title has an important non-economic component. The land has an inherent and unique value in itself, which is enjoyed by the community with aboriginal title to it. The community cannot put the land to uses which would destroy that value.

 The Supreme Court has also clearly stated that: "lands held pursuant to aboriginal title have an inescapable economic component."

Compensation for use of lands that are subject to the aboriginal title of the Mohawks of Akwesasne cannot be determined on the basis of ordinary market principles and assumptions.  Determination of the compensation for the use of Mohawk lands must take two additional dimensions into account.  First, the use of the lands by future generations must be considered and be compensated as long as Mohawk territory is used for navigation and other transportation purposes.  Second, the compensation should reflect the value of the use of the lands, whether that value is generated by commercial shipping or by vehicle transport.  In economic terms, the lands and waters of the Mohawk Territory of Akwesasne should generate continuing revenues for Akwesasronen from Seaway and Power operations.  The failure of the Government of Canada to meet its fiduciary obligations has resulted in a massive subsidization of the Seaway and Power Project by the people of Akwesasne.

The Seaway has had numerous economic impacts on Akwesasne which are illustrated by the following examples.

Dredging spoils were placed on prime river-valley farmland which severely affected the residents of Akwesasne for whom agriculture was an important component of the economy.  The lands covered by dredging spoils have proved over the years to be unproductive for farming purposes.  It has been necessary for individual residents to import topsoil to cover the spoils.  Moreover, as early as the 1930's, and certainly in the 1950's during the construction of the Seaway, it was known that the bed of the river had been contaminated by years of unregulated dumping in the Great Lakes and the St. Lawrence.  Now Akwesasne is put to considerable expense, as is the Government of Canada, to perform environmental assessments on the sites covered by dredging spoils.

Dredge spoils with various toxins dumped on our lands have found their way to the water tables in Akwesasne.  The Akwesasne Community has been forced to purchase bottled water for its Elders, because their ground water wells show toxins.  For the safety of its people, the Community has now had to expend great amounts of money to build water plants and waterlines to insure potable water for its community members.  Waterline development is only partially underway and we predict huge expenses for this infrastructure over the next 15 years and ongoing operation and maintenance of the waterlines forever.

Toxins from dredge spoils have their affects on the health of community members generation after generation.  Health care costs related to Seaway issues have long term effects that this community has borne and must continue to  bear. 

There is a proven link between commercial traffic in the navigation channel of the Seaway and shoreline erosion, particularly in the narrow reaches of the St. Lawrence River.  The erosion of shoreline property results in significant costs to individual landholders as well as costs to the community as a whole. The Canadian and American Governments and the shipping and cargo interests that monopolize the Seaway can, in many instances, avoid liability for these costs on the basis of what is called a navigation servitude which clearly favours the interests of commercial navigation and burdens the riparian owners with the costs of the destructive impacts of navigation.  These costs have never been fully assessed in respect to the Mohawk Territory of Akwesasne.

The construction of the Seaway and the related Power Project in the 1950's has had indisputable and far reaching environmental impacts.  With the degradation of the aquatic environment and the transformation of the St. Lawrence ecosystem, there has been a significant disruption of the Mohawk fishery which has resulted in the loss of a crucial component of the Mohawk economy. Peaking and ponding has reduced the muskrat population in Akwesasne. Until the early 1970's, muskrat was a popular and readily available traditional food.  Changes in the water levels of the St. Lawrence River have diminished marsh bed areas which has led to a reduction in waterfowl and forage for cattle.

There are many practices, customs and traditions that are central to the Mohawk culture which have been severely curtailed by the construction and operation of the St. Lawrence Seaway.  Some of these practices are now being threatened by the increasing reliance of the Seaway on ice-breakers and the creeping extension of the navigation season. 

 Our own Kanienkehaka (Mohawk) culture and language has suffered due to changes in traditional economy and lifestyle which were dependant on the river for survival.  Today, our community must make great financial investments to protect our language and culture from extinction and it is a battle that we will be continuing for generations.

 Since 1982, our aboriginal practices, customs and traditions are protected by the Constitution of Canada.  The Supreme Court of Canada has specifically recognized the constitutional aboriginal fishing rights of the Mohawks of Akwesasne.  These aboriginal rights have an inescapable economic dimension in the same manner as the aboriginal title of the Mohawks of Akwesasne.

 There has been no compensation for the loss of the fishery and of other traditional economic pursuits that results from the massive environmental damage caused by the Seaway and there has been little or no initiative from the Seaway to adequately study the declining fishery or to address the costs of this damage. Declining fish populations have a great impact on human health and community culture that have far reaching economic effects.

 The Seaway has not provided any support toward the survival of fish species in their natural environment by repairing erosion, providing shoreline tree cover for fish habitat or by building new spawning habitat.  The Seaway has also not mitigated declining fish populations by supporting modern aquaculture technology.  Any new technology regarding aquaculture has been born by our own community’s environmental departments and by community members who have our community’s health and future in mind.  A decade of research in aquaculture and huge investments in supportive technology are the costs that this community has had to bear in order to see fish in future community diets.

 Consider as well the burden of risk of the Seaway.  There are frequent accidents and spills in the waters of the St. Lawrence River.  The most recent spill of calcium chloride in July 2004 was a chilling reminder of the risk of a major and destructive spill of toxic substances.  The brunt of the damage of such spills falls on the local communities and will fall heavily on the people of Akwesasne.  As that spill has shown, the Seaway is poorly prepared for emergency response.  This lack of preparation may represent an economic benefit for the Seaway which is relieved of the cost of equipment and training, but the risk of a major spill should be calculated as another hidden cost of the Seaway that burdens the people of Akwesasne and other riparian communities.

 With the Seaway transportation system utilizing the St. Lawrence River through Akwesasne Territory, Akwesasne must devote a great deal of its own revenues, resources and personnel toward the protection of its people and the environment as a precaution against potential Seaway shipping accidents.  Emergency preparation, training and equipment have not seen any financial support from the Seaway.  Therefore it is this small community that  has had to bear the financial cost of this kind of preparation for its own safety and the safety of others.

 The challenge of designing an economic study is to choose terms of reference that don't skew the results towards politically expedient outcomes.  The public frequently learns of the results of economic studies through the media.  Economic impact reports commissioned from well-connected consulting firms often portray the economic contribution of a given project in glowing terms or predict dire economic consequences if the project is not undertaken.  It is natural that the public should harbour serious doubts about the objectivity of these reports when they do not incorporate the means to ensure their integrity.

One method of ensuring integrity is to require independent peer review of the studies so that the methodology of the study and its results enjoy a broad measure of approval.  Independent reviews of the methodology and of the results of the economic studies, and particularly those that are critical of the study, should be published together with the final report in order to provide the public and decision-makers with a balanced picture of the issues.

It is important that the economic study incorporate an appraisal of the known theoretical shortcomings of the methodology that it employs.  The study should clearly state its premises and assumptions.

It is likely that any report on the economics of the Seaway will include a survey of the literature that has already been generated in the past.  It would be useful if a final report included an assessment of the accuracy of past economic reports and predictions.  This would throw additional light on the strengths and weaknesses of economic predictions and impact assessments of the Seaway.

The report should avoid confusing "national economic interests" with what are essentially the interests of a particular classes of industries and persons. The report should identify the locus of economic benefits and impacts. In other words, the temptation to reduce economic analysis to an abstract determination of marginal benefits and costs should be avoided.

It should be clear who benefits economically from the Seaway and in what proportion.  It should also be clear who bears the burdens of Seaway operations and in what proportions.  Where limited sectors reap particular benefits from the Seaway, this should be not be obscured by a reductive analysis.  Similarly, where particular sectors or communities bear particular and disproportionate costs of the Seaway, this too should not be obscured by a reductive analysis.

The report should also clarify the economic contribution and costs of various components of the Seaway.  There is a valid distinction to be drawn between intra-lake transport in the upper Great Lakes and international transport by way of the navigation infrastructure between Montreal and Lake Ontario.  These should be given distinct consideration in order to determine the relative cost and contribution of the various components of the Seaway.

Inevitably, the results will be skewed if the methodology of the study filters out some costs of operating the Seaway, particularly those costs which result from environmental impacts, while emphasizing other costs like those supported by shipping interests.  The report should include an economic evaluation of the kinds of costs that Seaway operation imposes on various interests, such as the costs of erosion, of loss of wetlands or of controlling exotic species like the zebra mussel and should provide an economic analysis of the Seaway which addresses the cost of mitigating past damages.

We share the hope expressed by the Mohawk Nation Council of Chiefs that others who are opposing the Seaway Expansion, winter shipping and ice breaking activities will join the Akwesasne Mohawks as we struggle to protect the environment and our way of life from the devastating impacts of ice breaking activities within the St. Lawrence River, winter shipping and the potential Seaway Expansion.

Since Time Immemorial the Mohawk People and our Ancestors and Predecessors have depended upon the River for their Survival. Now the River depends on us for its survival. It is time for us to repair the wrongs done to the River, and all life connected with the River.